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A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2015Paper 1 Q111 Mark

Many people used to smoke in restaurants. Restaurant owners have found that the reduction in smoking caused by a tax on cigarettes has decreased their sales of meals. How would this be shown on demand and supply diagrams for cigarettes and for meals? [Table 11.1]

Amovement along the demand curve a shift inwards of the demand curve
Bmovement along the supply curve a movement along the demand curve
Cshift outwards of the demand curve a shift outwards of the supply curve
Dshift outwards of the supply curve a movement along the supply curve

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of the price system and the microeconomy within the Economicssyllabus. The examiner's mark scheme requires...

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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) May/June 2015 examination, Paper 1 Variant 2. It tests the topic of The Price System and the Microeconomy and is worth 1 mark.

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